Banks Swarmed in Argentine City

KEVIN GRAY

Published 6:00 pm, Sunday, November 17, 2002

Associated Press Writer

BUENOS AIRES, Argentina (AP) _ More than 100 angry Argentines, including a man carrying a rifle, converged on banks in the coastal city of Mar del Plata on Monday, demanding the return of their savings trapped in a 11-month-old banking freeze.

Embattled President Eduardo Duhalde, meanwhile, announced that the presidential election would be held April 27.

Officials at Banco Provincia, one of Argentina's largest state-owned banks, temporarily closed its nine Mar del Plata branches after crowds sought to enter the banks following a federal judge's decision overturning the banking restrictions.

Since December, Argentines have been limited in what money they can withdraw from their bank accounts as the government has sought to prop up a fledgling banking system that bled US$20 billion in deposits last year.

The freeze was imposed last year as Argentina plunged into its most severe economic crisis in history, resulting in a severe devaluation of the peso and a multibillion dollar debt default.

In recent months, the government has moved to gradually ease the restrictions, but thousands of Argentines have won full access to their savings through court challenges.

The judge's ruling came late last week in Mar del Plata, 250 miles southeast of Buenos Aires, and applied to some 14,000 Argentines. It prompted hundreds of people to turn up at banks accompanied by lawyers, hoping to withdraw their money.

Local news reports said one man burst into a local bank early Monday with a rifle demanding his money, but eventually left after authorities said they could not return his balance in full.

Duhalde and the country's provincial governors ended their political infighting by announcing plans for the balloting April 27.

"Today we decided to do the right thing and hopefully have avoided letting the country slip back into turmoil," he said.

Duhalde is a caretaker president who took office in January after food riots and deadly street protests forced a revolving door of five presidents in two weeks.

Duhalde has been working since then for a new aid accord with the International Monetary Fund, which halted loans to Argentina last December, forcing the government to default on much of its US$141 billion in foreign debt.

Duhalde also worked with the governors to scale back spending to meet demands from the IMF for increased austerity in exchange for a new aid deal.